Smith & Nephew: The Chart Speaks Volumes

S&N has been the ultimate sleeping giant, sleepy management, takeover / breakup situation for many years. The only problem is that it has not happened, despite many false dawns.

We may be enduring another of them now in the wake of the recent appointment of a new CEO. However, it looks to be the case from the daily chart that in the wake of a gap higher through the 200 day moving average last week – very technically significant, and the new gap higher today, something is going on.

This may just be the likes of Elliott Advisors topping up their holding. But we may now be in a situation whereby unless there is a bolt from the blue negative event, we may regard this stock as being right at the top of the watchlist. This is especially so given the way above the 200 day line at 1,325p we have an implied 1,500p target at the top of last years trend channel.

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